Rose Bowl Operating Company RBOC FY 2019 Recommended

Rose Bowl Operating Company (RBOC) FY 2019 Recommended Budget Joint Finance Committee/ Council June 04, 2018 1

Mission Statement The mission of the Rose Bowl Operating Company (RBOC) is to improve the quality of life in Pasadena by providing top quality entertainment and by generating revenue through the operation of a world -class stadium and a professional quality golf course complex. 2

Rose Bowl Operating Company FY 2019 Revenues and Expenses In thousands Summary of Revenue & Expenditure by Major Budget Area Stadium Revenue Expenses Operating Expenses Debt Service Stadium Net Total FY 2019 Recommended $44, 985 30, 565 13, 245 $1, 175 Golf Course Revenue Operating Expenses Golf Course Net Total $6, 139 4, 587 $1, 552 Net Income Before Reserves for Future CIP (FY 2020+) $2, 727 Reserves for Future CIP Funding (FY 2020+) Stadium – Capital Improvements Funding Golf Course – Capital Improvements Funding Subtotal Reserves for Future CIP Funding (FY 2020+) $2, 220 459 $2, 679 Total Net Income (After Designated for Future CIP) 3 $48

Rose Bowl Operating Company FY 2019 Sources and Expenses In thousands FY 2019 Recommended FY 2019 Funding Sources Revenues Stadium Golf Course Total Operating Revenue $44, 985 6, 139 $51, 124 FY 2019 Expenses Operating Expenses Stadium Golf Course Total Operating Expenses $30, 565 4, 587 $35, 152 Non-Operating Expenses Debt Service & Bond Reserve Requirement Reserves for Future CIP Funding (FY 2020+) Total Expenses 13, 245 2, 679 $51, 076 Current year Capital (fund balance) $5, 585 Total Appropriation $56, 661 4

Rose Bowl Operating Company Budget History By Division or Major Budget Area Stadium Revenue Expenses Operating Expenses Debt Services Stadium Net-Total Golf Course Revenue Operating Expenses Golf Course Net-Total * Total Net Income Before Reserves for Future CIP (FY 2019+) Reserves for Future CIP Funding (FY 2019+) Stadium – Capital Improvements Funding Golf Course – Capital Improvements Funding Subtotal Reserves for Future CIP Funding (FY 2019+) Total Net Income (After Designated for future CIP) • FY 19 Golf Course Operator is going to a management structure, RBOC recognizes all revenues and expenses 5 in thousands FY 2017 Actuals $47, 822 $28, 216 12, 696 $6, 910 $2, 550 528 $2, 022 FY 2018 Adopted $41, 814 $28, 135 12, 995 $683 $2, 550 590 $1, 960 FY 2018 FY 2019 Revised Recommended $53, 854 $44, 985 $31, 271 $30, 565 13, 111 13, 245 $9, 472 $1, 175 $2, 377 $6, 139 595 4, 587 $1, 782 $1, 552 $8, 932 $5, 059 563 $5, 622 $2, 643 $2, 024 556 $2, 580 $11, 254 $9, 537 447 $9, 984 $3, 310 $63 $1, 270 $2, 727 $2, 220 459 $2, 679 $48

Rose Bowl Operating Company FY 2019 Revenues and Expenses In thousands FY 2018 Adopted RBOC Net Income Stadium Golf Combined ($1, 340) 1, 403 $63 RBOC Net Income decrease in FY 2019 FY 2018 FY 2019 Revised Recommended ($64) 1, 334 $1, 270 ($1, 045) 1, 093 $48 ($1, 222) Significant Changes (year to year) + Non-Operating Rev (Cell sites, add’l advertising etc. ) - Bond Debt service expense increase - General & Admin expense increase (3. 1% CPI) - Golf Course Net Income - Stadium Net Event Income decrease - Personnel and Salaries expense increase 6 $100 ($134) ($204) ($229) ($312) ($441)

Rose Bowl Operating Company FY 2019 Revenues and Expenses In thousands # of Major Displacement Events Net Event Income (By Tenant) Tournament of Roses UCLA Flea Market Arroyo Seco Weekend Major Tenant Sub-total Other Major Events: Other Minor Events: July 4 th -America-fest Other Event Sub-total Net Income Total Net Event Income decrease in FY 19 (from Revised FY 18) FY 2019 Recommended 16 $4, 148 4, 920 1, 129 2, 281 $12, 478 $4, 030 4, 900 1, 150 2, 7481 $12, 828 2, 924 1, 300 (82) $4, 142 2, 3012 1, 252 (73) $3, 480 $16, 620 $16, 308 ($312) 1 Arroyo Seco Weekend min. rent increased net by 468 k 2 Lower net 623 k due 2 less Other Major Events than FY 18 Revised. FY 2018 Revised 18 7 -2%

Rose Bowl Operating Company FY 2019 Key Issues and Strategies Key Issues • Execution of Arroyo Seco Weekend Events (June 2019) • Begin planning with AEG and City in Summer 2018 and keep stakeholders informed on a regular basis • Maintain & grow Premium Seating revenue • Target marketing, leverage new events and contract extensions • Stabilize and grow golf course property revenue • Enhanced food & beverage effort, review clubhouse facility for potential improvements, identify more outdoor opportunities, enhanced focus on management of golf course 8

Rose Bowl Operating Company FY 2019 Key Issues and Strategies Key Issues (continued) Strategies (continued) • Continued focus on event operations, including security and outside management • Work and communicate closely with public safety officials, event promoters and stakeholders • Prepare for new stadium competition • Strive to have long-term agreements for key events, sponsorship and premium seating agreements • Make significant progress in Legacy $40 Million Centennial Campaign • Identify donors and prospective naming opportunities, while providing appropriate resources • Continue to grow minor events revenues. • Target annual clients and push to $1. 2 M net minor events revenues 9